AkzoNobel-Axalta Merger May Require Refinish Divestiture, Reuters Reports
AkzoNobel and Axalta Coating Systems are moving toward conditional European Union approval of their proposed $25 billion merger, with the companies expected to offer the sale of AkzoNobel’s vehicle refinish business to address competition concerns, according to an Oct. 8 Reuters report republished by MarketScreener. The report, by Foo Yun Chee, cites people familiar with the matter. The European Commission, AkzoNobel and Axalta declined to comment to Reuters.
People familiar with the matter told Reuters that the companies met with European Commission officials Wednesday to discuss the transaction and possible remedies. A formal remedy proposal is expected to be submitted next week. The submission would extend the Commission's current Oct. 22 provisional decision deadline by 10 working days.
According to the corrected Reuters report, earlier competition concerns involving overlaps in powder coatings have been resolved, leaving vehicle refinish as the remaining issue to be addressed. The European Commission, AkzoNobel and Axalta declined to comment on the report.
The Commission's official merger register continues to list M.12269 – AKZONOBEL / AXALTA as an ongoing Phase I investigation. The transaction was formally notified Sept. 17 and, as of Oct. 9, no Commission decision has been recorded.
Reuters initially identified Axalta as the owner of the vehicle refinish business proposed for divestiture. Its corrected report, republished by MarketScreener, identifies AkzoNobel’s vehicle refinish business, not Axalta’s. That distinction is significant because AkzoNobel's vehicle refinish portfolio includes brands such as Sikkens, Lesonal, Dynacoat and Wanda and serves collision repairers, commercial vehicle refinishers and other automotive aftermarket customers.
AkzoNobel and Axalta announced their all-stock merger of equals in November 2025. The companies said at the time that the combination would create a coatings company with approximately $17 billion in annual revenue and a $25 billion enterprise value, with approximately $600 million in identified run-rate cost synergies. The combined portfolio was expected to span automotive refinish, mobility, powder, industrial, aerospace, marine and protective coatings and decorative paints.
The transaction remains subject to regulatory approvals and other closing conditions.
Sources: Euronext, Competition Case Search, MarketScreener Canada, AkzoNobel
Automotive refinish is one of the most significant areas of overlap in the proposed AkzoNobel-Axalta combination. A sale of AkzoNobel's refinish operation could materially change the portfolio, brands and competitive position of the combined coatings company while resolving a key EU competition concern.
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